Most people’s tax returns are ridiculously easy. If you have wages, interest or unemployment benefits, and perhaps have some Earned Income Credit coming, go to the IRS site that directs you to place where you can do your taxes for free. Don’t be scared – it’s routine, fail-safe, and accurate.
Whatever you do, avoid H&R Block.
If your taxes are more complicated, you are self-employed, itemize deductions, have doubts about whether or not you are entitled to exemptions, buy a tax program. TurboTax will get you through it. They will rip you off to piggy-back a state return, which is a big profit center for them, and maybe even charge to e-file, which costs them virtually nothing. But you are still better off than you would be visiting an expensive preparer.
Whatever you do, avoid H&R Block.
If you have tax issues beyond the norm – sale of assets or residences, passive investments, minimum IRA withdrawals, audits, rental units, LLC’s and S-Corps and K-1’s, then it would not hurt to visit either a CPA or an enrolled agent. Avoid the shingle-hangers, tax preparers who are neither of those, as they are usually strictly reliant on the software and often turn out shoddy work. CPA’s and enrolled agents must undergo rigorous training. It’s not easy to become either. Do ask your preparer how he/she bills, as many of them, like auto mechanics, work off a schedule and charge $X for this form, $X for that form, without regard to actual time. Those who charge by actual time are usually more reasonably priced. ut remember that if you think the fee unreasonable, you are paying for time, knowledge, and liability.
Whatever you do, avoid H&R Block.
It’s probably wise to avoid the big firms, the well-established CPA’s in town, and I mean them no disrespect. Quite the opposite – usually these are people who deal in complicated issues, audits and court cases. Using them for a fairly normal return is a waste of your money and their resources. They are there to serve a different clientele.
Now, H&R Block: They will do a good job for you on all of the above except very complicated returns. However, they are wildly over-priced. The bulk of the work in tax preparation these days is done by the software firms who prepare the programs that we tax preparers use. Consequently, H&R Block will do a ridiculously simple return and charge an outrageous fee. Where they invest at best 15 minutes of time, they will charge $150-300. They get away with this nonsense because people are intimidated by taxes and think there is some special magic behind the curtain.
And they have another angle: All of their employees have to push, and push hard to sell you a tax refund loan. These days e-filed refunds arrive in your bank account within 7-10 days, but Block will push to advance you the refund nonetheless. There is not enough time involved for real interest to be earned, but they will nail you with fees. It has become a major profit center for them.
H&R Block is running adds on the radio now, probably TV as well, urging people who file 1040EZ’s to come in and have them done for “free.” At the very end of the ad, the fast talker says “extra fees for state returns and earned income credit.” That’s almost everyone who files a 1040EZ! (But take a place like Wyoming, that has no income tax, and I’m betting that ad is not running there.) It’s bait and switch.
It’s reprehensible, and sleazy. Whatever you do, avoid H&R Block.
Piece of Mindful 
I used Charles Bailey for many years (80’s and 90’s) until the program had a glitch giving the wife and I the EIC. When I brought the letters in the red faced acc said, “yeah, I should have caught that”.
Last time they saw my 1000 bucks.
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Its like running down a narrow deadend street with no way to turn around. Your website offers no results when looking for answers about refund status. The websites you offer up do even worse. My State, State of Georgia, keeps telling me that Ive entered the wrong the information. You would think that after using my SS number for fifty years I would know what it is by now. Not according to them. HR Block doesnt seem to care either. Theres not one single contact option on this site. Why should you care, You have your money, (Now go away and let me screw someone else over for tax preparation fees).
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Turbo Tax is a joke.. do you know how many errors I’ve corrected on returns by taxpayers who thought they were smart enough to do it themselves? And forget CPA’s they know nothing of tax laws, in their whole life they take ONE course in income taxes and its really basic too. I’ve found one couple a couple thousand dollars their CPA missed by telling them they couldn’t claim there child for the whole year because she was born in September. Really?? Its really simple, you wouldn’t cut out your own appendix if you had a stomach ache, you go to an expert. It’s the same way at H&R Block. We are EXPERTS… all summer long, after the tax season is over we are spending hours learning the new tax laws and how it affects the taxpayer. Just to say an H&R Block preparer relies on the program is so outrageously bogus and a joke. Not one person is put behind the desk without first going through at least 60 hours of tax education just to get hired, and then a minimum of 30 hours each year to continue to work for H&R Block. No one knows as much about taxes as we do. NO ONE.
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I guess that’s why you used your real name. You are so proud of your work. H&R Block’s business Plan is to ream little people – people who need a simple 1040EZ. You get them in the door with sleazy advertising, telling them it is free if that’s all they need, and then hammer them with fees for state returns or EIC. These people could get it done for free via IRS. But no, you assholes get hold of them, the ones who can afford it least, and squeeze them. And worse yet, you nail them with refund loans.
You are slime balls, and don’t take it wrong. You are not my competition. I don’t do 1040EZ’s – I just advise them on how to get the done free. You make me sick.
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@H.L. Mencken
Are you kidding me?!?! People like you are EXACTLY the reason people should avoid the mass producing tax shops. Let’s review some of your verbal diarrhea, shall we?
Your Quote:
CPA’s they know nothing of tax laws, in their whole life they take ONE course in income taxes and its really basic too.
The Correct Answer:
To obtain the required body of knowledge and to develop the skills and abilities needed to be successful CPA’s, students should complete 150 semester hours of education. Included in this 150 hours: Taxation: Income Taxation, Financial Planning, Corporate Taxation, Tax Implications of Accounting Decisions
Your Quote:
It’s the same way at H&R Block. We are EXPERTS… all summer long, after the tax season is over we are spending hours learning the new tax laws and how it affects the taxpayer.
The Correct Answer:
Really? All summer long? Does it really take you all summer to learn the new tax laws? What does a course at a leading tax shop give you? (directly from their website) The H&R Block Income Tax Course is recognized for 2.25 hours of credit with The University of Phoenix®².
Directly From The American Institute of Certified Public Accountants:
Generally, most states require at least 20 hours of CPE credit per year with at least 120 hours over a three year period. This averages to 40 hours of CPE credit per year. Additionally, many states have separate requirements for ethics CPE courses which must be taken once every couple of years.
Does that mean H&R Block is no good? Of course not. But do not compare the average Block preparer to a CPA. Most HRB offices are NOT open year round. Did the CPA make an error on your clients return? Perhaps. Have you made NO errors EVER? Bet you have. I caught several in your post. If you had done 5 minutes worth of research, you might not have made those mistakes.
Happy Tax Season!
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I totally agree with you! H and R Block totally rips you off! I went to them for the very first time this year. I am on a disability pension and the fee that they charged me was a whopping $160.00! I just about had a heart attack! I have never paid this money for a simple and straight forward return. These guys are the modern day shyster shingle hangers and if they make a mistake on your return, you don’t get any refund.
What really beguiles me as well, they have a fee on their poster when you walk by their office and it says, “$39.95”, so, they have the hook right there and I would like to meet the person who has a return that is charged $39.95!
Never, Ever, Go to H and R Block…Avoid them at all costs…seek out somebody who has bought a program…like a bookkeeper and they will charge a more reasonable fee of about $40 – 50.
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